Mortgage Rate Rises
- Thread starter glenimp617
- Start date
And that is where sensible goverment policy comes into play as they have far more potential options than the central bank do. It shouldnt only be the central banks job to curb inflation when the only tool theyve been given is a mallet.
Caporegime
Exactly my Grandad had to deal with WW1, WW2, rationing in the 50's and strikes of the 70's so we haven't had it as bad as people make out. It is just the boomer generation have got it absolutely perfect that it makes our lives look less. Brexit, Ukraine, Covid are all but accelerators. We have been on this course ever since the 80's it has just happened sooner. The whole Ponzi scheme of Western Capitalism has run its course. Far too much of the minority have far too much of the money. Until that is fixed nothing will change.
If energy and utilities hadn't been privatised 40 years ago we would have been in a completely different situation to what we have now. We were world leaders in civilian nuclear energy, we have by far the most amount of oil in Western Europe but we sold it all to get rich quick. We would have been totally unaffected now as we would have mostly self sufficient energy and a sovereign wealth fund that makes Norway look like a pauper.
Last edited:
Soldato
Indeed we flogged it all, and plenty of other national assets in order to support a lower tax rate, and people are surprised our tax rate is having to go up now.
We have an opportunity to get on with on shore wind now, can be done in less than a year, and yet we are now one of the worst in the world for active on shore additions. Simply because of Nimbyism
"Oh but they don't look very nice, I would prefer my neighbour was starving rather than have to look at a horrible wind turbine!"
Definitely this.
On the decline now. Just the start really. Scary thought for kids now is what thier future is going to look like. But with how rapid technology is progressing I wouldn't like to even guess.
The chance of it being worse and worse for the average Joe are very much building.
From environment to AI to the general funneling of ever more wealth to the few.
We are OK. We have decent jobs and managed to get a house just in time to avoid the huge rate rises and the huge price increases and the potential falls coming.
Everything is nature booms and busts. We are no different really. Capitalism has kept the boom going for a while. But there are too many people and we all expect life to get better over time. But only so long a big pyramid scheme can continue. And with all big pyramid schemes.... The later you sign up... The worse it is
To be fair thats slightly different, dan was saying it doesnt work, so why were people doing the same flawed solution again, when it has worked before, which is why they are doing it.
You are only focussing on the poorer end of society though. As a whole, the country has been awash with spare money, as a huge amount was saved through covid when people couldn't spend it. So the demand for goods and services has still been very high, even though the supply side shortage was increasing costs massively.
Sadly the poorer end of society is the majority of society. And then as weve seen the richer end simply benefit from this "solution".
The Scale of Economic Inequality in the UK - Equality Trust
The UK has very high inequality of income compared to other developed countries. The UK's wealth inequality is much more severe than income inequality.
equalitytrust.org.uk
Last edited:
Soldato
No it shouldn't only be BoE. But if you are given a hammer and know it will destroy what you're trying to fix, surely you as a competent individual would push back and say "hang on, no Im not going to use this hammer because it will do more harm than good, take it back and either give me better tools or fix it yourself"?
Only an idiot continues to use the hammer.
We're on the same page then.
Soldato
Absolutely, I was just reinforcing the point that BoE shouldn't continue to use tools when they themselves know how 'blunt' they are. Only an idiot would do that. If they had any competence they would be pushing back on the Government.
Soldato
Lol.
Way to go about proving you have no ******* clue.
Way to go about proving you have no ******* clue.
Soldato
We are just not on the same page. You seem to believe BoE should just continue to raise rates even if it destroys the economy and individual livelihoods in the process. I don't.
Soldato
Didn't you fix your mortgage for a decent term?
Last edited:
Soldato
Yes 5 years. Who knows what state we'll be in by then.
What about everyone else whose mortgage is up soon, especially high LTV buyers who may have bought first houses 2-3 years ago so will be coming off fixes with high debt levels?
Last edited:
Soldato
Once upon a time there was a chancellor who believed in prudence. Get rid of all this annoying boom and bust was his mantra, believe in prudence. His first act once his government had been elected was to remove the right of government to meddle with interest rates. It is prudent to do so he said. Let the Bank of England decide what the rates should be and when to change them. We only require that they should have a target of 2% for inflation and if they do not meet it they should jolly well write me a letter to explain themselves.
Have I got this upside down here, but doesn’t raising interest rates punish the normal people and reward the rich? Normal people who need to borrow for a house, car etc, and reward people who have excess cash they can invest? Literally taking from normal people who need to borrow and giving to people who can invest?
If inflation is measured against standard items food / energy etc? Then raising interest rates won’t help to cull demand… as people still need to buy those items?
Is there not a temporary tax they could impose against luxury goods instead? Then the rich can invest their money instead of buying Gucci belts?
If inflation is measured against standard items food / energy etc? Then raising interest rates won’t help to cull demand… as people still need to buy those items?
Is there not a temporary tax they could impose against luxury goods instead? Then the rich can invest their money instead of buying Gucci belts?
Soldato
Can you imagine the carnage last summer if he hadn’t done that? Of course the Tories defend the independence because it suits them to blame someone.
Truss, Kwarteng, Brexit, Currency devaluation, loss of credit rating oh no boss nothing to do with us
As i was actually “there” in 2007/8 I remember when Fannie and Freddie tanked (because don’t forget it was them first) and the squawk box guy screamed out “they’re cutting, they’re cutting, they’re cutting” (he was a South African guy, very entertaining) and IIRC it was Sweden who cut to 0 first. I miss the trading floor action! FWIW I think we took 160BN back on the books from the SIVs at that point. Within a week we were peering out of the 26th floor window at the Lehmans lot lined up outside getting their marching orders. Nothing to do with Brown whatsoever I’m afraid.
Last edited:
I'm not sure you fully understand inflation or how the approach of raising interest rates tackles it. Raising rates is in effect a temporary tax. Targeting a tax towards only the wealthy minority isn't going to effectively make a difference.
It's unfortunate that both inflation and interest rates hurt the poorest in society the most.
Last edited:
Soldato
Yes, when Hunt said it was worth a recession to tackle inflation he wasn’t pulling it out of thin air, he was lubing us up.